Correlation Between Samsung Electronics and Dream Industrial
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Dream Industrial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samsung Electronics and Dream Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Dream Industrial Real, you can compare the effects of market volatilities on Samsung Electronics and Dream Industrial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Samsung Electronics with a short position of Dream Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Dream Industrial.
Diversification Opportunities for Samsung Electronics and Dream Industrial
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Dream is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Dream Industrial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Industrial Real and Samsung Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samsung Electronics Co are associated (or correlated) with Dream Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Industrial Real has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Dream Industrial go up and down completely randomly.
Pair Corralation between Samsung Electronics and Dream Industrial
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.06 times more return on investment than Dream Industrial. However, Samsung Electronics Co is 17.05 times less risky than Dream Industrial. It trades about 0.16 of its potential returns per unit of risk. Dream Industrial Real is currently generating about -0.01 per unit of risk. If you would invest 3,763 in Samsung Electronics Co on December 10, 2024 and sell it today you would earn a total of 297.00 from holding Samsung Electronics Co or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.94% |
| Values | Daily Returns |
Samsung Electronics Co vs. Dream Industrial Real
Performance |
| Timeline |
| Samsung Electronics |
| Dream Industrial Real |
Samsung Electronics and Dream Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Dream Industrial
The main advantage of trading using opposite Samsung Electronics and Dream Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Dream Industrial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dream Industrial will offset losses from the drop in Dream Industrial's long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp | Samsung Electronics vs. TCL Electronics Holdings |
| Dream Industrial vs. National Storage Affiliates | Dream Industrial vs. CubeSmart | Dream Industrial vs. Rexford Industrial Realty | Dream Industrial vs. Plymouth Industrial REIT |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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